Pointe West Center, LLC v. It's Alive, Inc. and Shamil Qureshi, Individually, and as Agent For, It's Alive, Inc.

476 S.W.3d 141, 2015 Tex. App. LEXIS 9584
Court of Appeals of Texas·Decided September 10, 2015·No. NO. 01-14-00779-CV·Published·Cited by 20 cases

Opinion

*145 OPINION

Laura Carter Higley, Justice

Pointe West Center, LLC - filed suit against its former tenant, It’s Alive,'Inc., and the tenant’s guarantor, Shamil Qure-shi, for breach of contract. The jury awarded some, but not all, of the claimed damages. The trial court did not award attorneys’ fees to Pointe West. Both sides appealed. In two issues, Pointe West argues the trial court erred by denying its motion for judgment notwithstanding the verdict on damages and by failing to award any attorneys’ fees. In their cross-appeal, It’s Alive and Qureshi 1 argue the evidence was insufficient to support the damages that the jury awarded. 2

We affirm, in part, and reverse and remand, in part.

Background

Pointe West is the landlord for a shopping center along Interstate 10 in Houston, Texas. In August 2007, Pointe West and It’s Alive entered into a five-year lease agreement with Qureshi as a guarantor. Under the lease, It’s Alive operated a restaurant and bar, called Frank-N-Stein, in the shopping center. The lease term expired on August 15, 2012. The lease agreement contains provisions regarding the conditions It’s Alive’s space had to be in at the surrender of the lease. The lease also includes a holdover provision, which provides:

If Tenant shall remain in possession of the Leased Premises after the expiration or sooner termination of this Lease, then Tenant shall be a tenant at will, terminal at any time, and shall be liable for One and one half the Base Rent in effect at the expiration or-sooner termination of this Lease, and shall be subject to all of the other obligations of Tenant under this Lease. Additionally; Tenant shall pay Landlord all actual damages sustained by Landlord on ■ account of such holding over by Tenant. Nothing contained in the foregoing, ■ however, shall- be construed as the consent to any holding over by Landlord.

The lease also' provides that any amendments or modifications to the lease were required to be in writing and signed by both parties.

In May 2012, It’s Alive- sent a letter informing Pointe West that it did not intend to renew the lease and that it was looking for someone to purchase the restaurant and enter into a new lease, with Pointe West. The letter also requested that, upon the expiration of the lease, It’s Alive be able to remain in the space on a month-to-month rent basis at their current rent until it was able to find a new occupant or could no longer sustain running the business. Pointe West never sent a written response to the letter.

After the expiration of the lease term, It’s Alive submitted its regular rental payments to Pointe West for the months' of August and September. On September 27, 2012, Qureshi spoke with Farhad Behzadi, a consultant for the shopping center. Qureshi asked to stay another month. Behzadi told -Qureshi he could stay if he paid $15,000. After that, It’s Alive decided to vacate the premises. ■ .-.

*146 During the process of vacating the premises, It’s Alive damaged the space. A few days after It’s Alive vacated the space, Pointe West discovered the damage. Pointe West immediately began repairing the damages to the space while preparing the premises for a future tenant. Pointe West sued It’s Alive for breach of contract, conversion,- and trespass to chattels.

At trial, photographs admitted into evidence showed, among other things, mold on a wall from a water leak, multiple holes in the drywall, damaged ceiling tiles,, damage to the bar on the premises, damage to booth platforms, and exposed wires hanging from the ceiling. There was also evidence that It’s Alive left drains to both the bar and sink clogged, and ripped A/C thermostats- out of the walls'. Behzadi testified that some of the damage to the bar and other fixtures served no apparent purpose for It’s Alive to vacate the premises.

To’ establish their damages from It’s Alive’s vacating the premises, Pointe West presented numerous checks, receipts, and timesheets. A few of the checks were attached with invoices. One of the invoices connected the cost with It’s Alive’s premises; the remainder did not. The receipts likewise have no accompanying information explaining the purpose and use , of the purchases. The timesheets only reflect-the person who did some work and the amount of time worked in the reported time period.

-Behzadi was Pointe West’s only damages witness. He asserted that-it cost Pointe West $57,373 to repair the premises to ready it for a new tenant. He testified that he did not know the details of the purchases made, how the items were applied, or' the specific work done by the people who did repairs. Behzadi explained that, just before trial, he talked to the property manager, who explained' to Behzadi some of the detail' of the work performed. For the exhibits admitted at trial to prove damages, Behzadi testified that they collectively represented the documents produced to It’s Alive in response to discovery requests. Behzadi testified that, to respond to the requests for production, he had instructed the accountant to “put everything together that ha[d] anything to do with the repairs done at this space.”

Behzadi testified that much of the work done on the premises was done by “in-h'ouse contractors.” Behzadi explained, “These are ... in-house contractors that don’t necessarily even work for just the shopping center. They work for all of our properties.” On cross-examination, Behza-di acknowledged that' some of the time reported in the timesheets could not have included work for repairs on the premises in question. No testimony was presented, however, to show what amount of the time reported on each of the timesheets was attributable to It’s Alive’s space. For example, for one timesheet included in the record, the following exchange took place:

Q And you’re saying that all 80 hours that are shown on this' time sheet were devoted to It’s Alive’s space?
A' No, I’m ’not saying that.'
Q Okay. What portion of the 80 hours was attributable to It’s Alive’s space?
A I wouldn’t know — -I wouldn’t know exactly, but my guess would be anything from that October 1st or October 2nd when we discovered the space.
Q All right. So you have no idea of what portion of this would be attributable to It’s Alive’s space?
A I can have an educated guess, but no sure way of knowing, no.

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Pointe West Center, LLC v. It's Alive, Inc. and Shamil Qureshi, Individually, and as Agent For, It's Alive, Inc., 476 S.W.3d 141, 2015 Tex. App. LEXIS 9584 (Tex. Ct. App. 2015).

476 S.W.3d 141 (Pointe West Center, LLC v. It's Alive, Inc. and Shamil Qureshi, Individually, and as Agent For, It's Alive, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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